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#1215655 - 07/10/09 03:15 PM Repossessed Collateral
Cale_N_Oats Offline
Platinum Poster
Cale_N_Oats
Joined: Aug 2008
Posts: 742
Southern Illinois
Say we repossess a car and the borrower pays the payments up to date. Are there any state laws that require us to release the collateral to them since they have caught up on their payments? The reason being is we would like the borrower to just pay off the remaining balance of the note before we release the collateral.
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#1230708 - 08/11/09 02:40 PM Re: Repossessed Collateral Cale_N_Oats
Oursisnottoreasonwhy Offline
Platinum Poster
Oursisnottoreasonwhy
Joined: Nov 2004
Posts: 503
Central Illinois
http://www.ilga.gov/legislation/ilcs/ilcs4.asp

(625 ILCS 5/3‑114)

(1) Subject to subsection (f‑30), if, at the time of
repossession by a lienholder that is seeking to transfer title pursuant to subsection (f‑5), the owner has paid an amount equal to 30% or more of the deferred payment price or total of payments due, the owner may, within 21 days of the date of repossession, reinstate the contract or loan agreement and recover the vehicle from the lienholder by tendering in a lump sum (i) the total of all unpaid amounts, including any unpaid delinquency or deferral charges due at the date of reinstatement, without acceleration; and (ii) performance necessary to cure any default other than nonpayment of the amounts due; and (iii) all reasonable costs and fees incurred by the lienholder in retaking, holding, and preparing the vehicle for disposition and in arranging for the sale of the vehicle. Reasonable costs and fees incurred by the lienholder include without limitation repossession and storage expenses and, if authorized by the contract or loan agreement, reasonable attorneys' fees and collection agency charges.

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